latest. plus hillary clinton for president again? why some pundits are warning won't stand a chance if she runs in 2016. a rare december tornado, actually a series of tornados plaguing the south, ripping roofs off buildings and toppling trees. the latest all "happening now". rick: we begin with new information out of libya where there is growing frustration three months to the day after the deadly terror attack on the u.s. con suit late in benghazi. the "new york times" are reporting libyan authorities are refusing to cooperate into the investigation into the assault that killed four americans including our ambassador there, chris stevens on september 11th. "the times" reporting local police and government officials are reluctant to arrest islamist extremists who are suspected to belong to powerful militias there. despite the fact that the fbi identified several suspects none has been arrested in the country and even some have fled benghazi.

jenna: a big day for michigan, one of the most pro-labor states historically in this nation about to become a right-to-work state. the uns are not going down without a fight. they are staging massive protests. i'm jenna lee. rick: i'm rick folbaum in for jon scott. as massive amounts of demonstrators state troopers with tear gas and batons stand at the ready. governor rick snyder vowing to sign the right to work legislation as soon at it hits his desk. the measure means employees will decide for themselves whether they want to join and financially support a union the governor says that could create more jobs, others are worried that the legislation could weaken the union's power and lead to lower wages for everyone. >> it is a big deal because what they want us to do, they want to reduce workers

down to working for less. it is not about, more jobs. the jobs are going to be there. about what conditions you work under. we want to basically work, rite to work and have benefits and feed the middle class like we were. and this legislation is trying to reduce the middle class even further. rick: the fight in michigan has big national implications for organized labor as it is poised to become the 24th state with right-to-work laws. those states that have that legislation in state, 13 have jobless rates lower than the national averages. mike tobin is live in lansing. mike, a lot of activity there. describe the scene for us. >> reporter: well, it is pretty remarkable. moments ago they were chanting, don't sign the bill, don't sign the bill. there is degree which that is futile effort because the republicans have the votes in both chambers, both the house and the senate. this legislation will come up for what is called concurrence vote. it is expected to pass easily. so all of the sound and fury

you hear right now as they're chanting union over and over again, they have been chanting that governor snyder is a liar. what they can do for the most part is express their discontent. we talked to mr. king with the united auto workers. he said what they're out here to do is take a stand against injustice. i heard a short time ago from the incoming leader of the democratic party, who said all they can really do is make their voices heard. >> now it's official. ladies and gentlemen, the governor of michigan is one greedy nerd and he is one weak geek. and we're not going to take it anymore. he wasn't satisfied with outsourcing thousands of jobs to low wage china when he was on the board of gateway computer. he wants to turn michigan into the same low-wage environment we see in china. >> reporter: as you look at state troopers out here right now, some are equipped with batons.

look at their hips. what they have on their hips there are gas masks. you can see some weapons they're carrying. nonlethal weapons that would be used to dispurse the tear gas if it was needed to. as we bring up we heard someone shouting in the background it has been a peaceful demonstration. it has. there was trouble on the first day. eight people were arrested. a little bit of tear gas went out. here in this demonstration, things have been peaceful. nothing more than a lot of people showing up in numbers expressing discontent with the legislature and the speed with this legislation and speed which it moved through the legislature, jenna, mike, we saw a sign behind you. it said there is war on workers in the state of michigan. what is the primary gripe of unions and their members? >> reporter: well the primary gripe you end up at end of the day with someone paying his union dues and creating benefits working alongside of someone who is not paying union dues and getting same kind of benefits generated by the collective bargaining power of the union. they say ultimately, if you

have someone who has the ability to opt out of that union and not pay his dues, you whittle away at the power of the unions and their ability to bargain collectively for all of the people that you see out here demonstrating right now, gregg. rick: governor snyder had said, mike, that he wasn't interested in getting involved with union legislation. what changed his mind? >> reporter: it's interesting. something called proposition 2. you hear them chanting again, don't sign the bill. proposition 2 would have put collective bargaining on the constitution or in the constitution for michigan, to make it untouchable with legislation. governor snyder told the proponents of proposition 2, don't do this. it is an overreach. they did it. he came back with this. you hear a lot of people complaining this is retribution. what you see the governor doing now is pun nichement for the fact that they went for proposition 2, failed in november. this is the way the governor is getting back at them. rick: mike tobin live in

lansing, michigan. mike, thanks so much. the president weighing in on the right to work debate during his visit to michigan yesterday. take a listen. >> these so-called right-to-work laws, they don't have to work with economics. they have everything to do with politics. [cheering] they're really talking about giving you right to work for less money. rick: joining us is bob cusack, managing editor of "the hill." is the president right? is this more to do with politics than in anything else? >> i'll tell you, rick, these union battles, they're rarely tepid. they are very intense. there will be obviously future battles. the unions, this is a big blow to them. look at wisconsin. you look now at michigan with this law going to pass. wisconsin with scott walker, collective bargaining battle unions lost. they got their guy to win the presidential election. but this is a blow to organized labor. i think these protests are just a message to other states. listen, if you try to do this, we're coming after

you. rick: here's the quote though. does this have more to do with the role unions play in the workplace or more the role unions place in electing democratic politicians? >> the unions say, listen, this is a direct assault on them and it will lower wages and also lessen working conditions. industry leaders push back. partisan as you get. on energy issues, even immigration you have more regional difference ares. these are basically republicans and democrats going at it across the board on labor issues. rick: these laws, bob, they don't ban unions. they give people the choice whether this he want to join and pay dues or not. >> republicans say, why should a republican union member contribute to a union that will then turn around that money and elect a democrat? they say that's unfair. but, unions say, listen, if you go back a century when there were very little union presence, or no union

presence the working conditions were all of full. rick: we've seen this now happen in wisconsin, in ohio. we're watching it play out now on the streets in lansing, michigan. nationally speaking, what does this mean for the president who won a second term in no small part because of the support, the financial backing of the unions? >> rick, i think it is fascinating that obama has injected himself in this battle. by and large he kept the wisconsin battle before the election really at arm's length. it frustrated union officials who were also frustrated with him for moving some trade deals and not seeking single-payer health care legislation instead of going in another direction on health care. he obviously got that passed. obama jumping into this debate, this is signal he will get their back on this and other issues. but remember, he has to strike a fiscal cliff deal. that deal is likely to contain some things unions don't like. that is some of the politics going on right now. rick: bob cusack, managing

editor of "the hill." thanks so much. >> thanks, rick. >> there are three elements to this. growth, reduction in spending, and raising of revenues. we have already voted for, we, democrats voted for over a trillion dollars in cuts and spending. that was part of the budget control act and that's part of how we should go forward. jenna: that was house minority leader nancy pelosi late last month,g democrats in congress support ad trillion dollars in federal spending cuts. with so much of the fight over that looming fiscal cliff focusing on tax rates we want to look at that claim, that claim specific to spending to see how it stands up with the facts. doug mckelway is live in washington with more on this story. >> reporter: good morning, jenna. the republicans claim democrats are solely focused on raising tax rates not spending cuts. democrats counter what we heard from nancy pelosi. democrats agreed to over a trillion dollars in cuts as

part of the budget control act in 2011. indeed hear is the document. letter from cbo to spiker boehner laying out $915 billion in cuts between 2012 and to 21. the brookings institution it is a fact, she says pelosi was right. listen up. >> there are two different conversation going on about these numbers. one is about the cuts that are already embedded in law which is evidently what nancy pelosi was talking about and they are absolutely embedded in law and there is no question about them. >> reporter: but not so fast. keep in mind that these numbers were derived from baseline budgeting that is a washington gimmick that no family balancing its checkbook could ever get away with. baseline budgeting assumes that spending will rise each year and based outlays on accepted rise. >> over the past couple of years especially as part of the debt limit negotiations they pretended to cut spending using the washington definition, meaning spending doesn't

rise as fast as it was going to. they also had a tremendously dishonest gimmick where they claimed a trillion dollars in savings roughly for not fighting two wars in iraq and afghanistan for another 10 years. >> reporter: indeed, george will recently wrote that those alleged savings from not fighting two wars in afghanistan and iraq is like quote, cutting 800 billion by deciding not to build a ski resort on mars. further that nearly trillion dollars in cuts agreed to in the budget control act has not happened. >> the problem with that is that congress has done nothing to put legislation in place to cut spending to meet those caps. and that is one of the reasons that we're now in the fiscal cliff. >> reporter: critics say congress can not be totally honest about cutting the budget as long as baseline budgeting remains in effect. democrats used baseline budgeting to their advantage more than republicans but republicans are not immune to using it too. both parties are complicit in the kind of accounting

that queen only exist in washington, jenna. jenna: that is so true. speaker boehner will talk on the floor at noon. we'll bring our viewers live what he has to say about the fiscal cliff negotiations. whether or not we can read a little bit what he has to say where we're at in the negotiations of the maybe no ski trip to mars included in that. >> reporter: you doubt it. jenna: doug, thank you very much. we appreciate it. rick: the president's second term has not even started yet but some political pundits are already looking ahead to 2016. what they're saying about hillary clinton's chances four years from now. rare december tornados slamming the southern u.s., leaving behind a trail of destruction, devastating communities. we'll take you to the hardest hit areas straight ahead. >> just heard a big bam. thought the world was coming to an end. >> it was real scary. everything was just flying around, just tossed around. >> the tornado just came, bouncing from house to house.

rick: some extreme weather to tell you about out of central florida. a tornado tearing through the town of edgewater, damaging about 40 mobile homes in a community there. no serious injuries were reported but at least a dozen homes were destroyed. take a listen. >> he said, a big oak tree came through our front living room and missed him and my dog by inches. he is lucky to be alive. >> there are a lot of trees here. so i can, being a storm chaser could see motion of the clouds and it didn't look good. >> we're devastated about the whole thing. rick: lauren johnson from fox fill at station wofl filed this. >> reporter: rept we can hear the sound of progress, generators grumbling, chainsaws buzzing people outside the homes to see what they can do to clean up the mess left behind by mother nature. people discovering insulation from their homes strewn in their front yards. look at home behind me, twisted metal dangling from trees like decorations, or

wrapped around trees in some cases. we're told the people live inside the home not even here in town. they have live in new york. no idea what damage they will be welcomed home to. other people not allowed back inside their homes because of this damage. we're told their houses are completely destroyed. they're being helped by the red cross to see what they can get done for them. meantime, many families say they will spend the next few hours, days and weeks cleaning up the terrible mess. some say they will have to do it without the help of insurance. reporting in edgewater, lauren johnson, fox news. jenna: thank you to lauren there folks in florida not only ones facing dangerous weather. in louisiana another apparent tornado whipping across the southeastern part of that state. the it ripped off roofs uprooted trees and power lines. in the town of baker, east of baton rouge, people described the force of this storm. listen. >> started running, and as i was running into this ditch right here, i seen stuff flying over my head.

a power line came out and moved, it slapped me in the shoulder and twisted me around and i laid in the ditch. jenna: he is lucky, isn't he? many roads are blocked by trees and fallen power lines. crews are trying to clean up and urging folks to stay clear of any downed wires. those can be live and very dangerous at this time. rick: it is so scary. you have to make sure you and your family are safe when a storm like that is moving in. jenna: a good reminder. let's get back to michigan real quick because this is one of our top stories of the day. you're looking inside the capitol where union activists are taking over the state. we ask governor rick snyder what he feels about the right to work progress being made at the state capitol. rick: they are calling it the freedom to work law. the governor is excited about it because it gives workers the choice, reading from his statement, to choose whether or not they want to join a union. they won't be forced to pay union dues if they don't want to. they don't have to pay dues,

they pay them voluntarily. they have the freedom to do that as well. he points to a lot of progress he says has been made in the state of michigan over the last couple years. jenna: of course that is the argument by republicans. they want to advocate this law. if you look at those on the other side though, and i'm looking at a quote from steve cook, president of the michigan education association. he says this. whether the proponents call this rite to work or freedom to work, it is freedom to freeload. many unions say if they don't have people come in to join the unions, pay dues, necessary, unions lose power. unions in their argument protected working conditions and wages for years in this country. this is the big transition. not only state to go through it. we do expect rick snyder at any moment today to sign this legislation into law. we'll take you back to michigan as we hear more. obviously a lot of people on both sides debating this today. rick: we're all over that important story. we're also following new developments out of

north korea and that country's plan to test a long range rocket. the launch was scheduled to happen any day now. north korea dismantling the rocket to take it off the lawn of pad. is the north caving in to international pressure or could this mean something else entirely. also a kansas family murdered in their homes. the year, 1959. that story brought to live in the chilling crime book. "in cold blood." clues in florida to another family murdered in florida may be tied it this. dr. michael baden looking at brand new developments in a old case. when we come right back. [ woman ] ring. ring. progresso.

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>> right now the window to launch is open but north korea is having a bit of a problem. scientists are reportedly dismantling a controversial long range rocket to fix what is reported as a technical glitch ahead of a planned launch sometime this month. the launch and another failed attempt in april have been widely condemned by the united states and south korea which say it is a cover for testing technology for missiles that could reach los angeles. north korea denies that, saying listen this isn't a rocket but a weather satellite we're putting into orbit. gordon chang is next. he is laughing a little bit. author of the coming collapse of china. he has written about north korea. what is going on there? >> north koreans want to launch and people focus on political issues, for instance this is the first anniversary of kim jong-un's rule because his dad died in the middle of december. i think it is because iran. iranians want a long-range missile. the north koreans have to

test it to know it works and north koreans need the cash and iranians will not buy something that fails. jenna: that is interesting. since that time, iran says we're not in any sort of business with north korea. that's what they say. >> right. jenna: it is up to us to be skeptical to look into this. what makes you really believe the connection is being made? >> we know who is in another cree for iran. it is rep sentsd -- representatives of the industrial group. they are the people who at the end of last decade, two decades ago bought north korea's nadong missile and repainted with iranian colors and gave it to the armed forces and unveiled as the shahab-3. this connection goes back 15, 20 years. jenna: you say iranian officials are on the ground in north korea. >> right. jenna: has nothing to do with tourism. it has to do with business? >> it has nothing to do with sking. >> north korea needs money. iran is under tight sanctions that affected

their economy. talk about the money trail. is there any other money involved? where does the money trail lead? >> the money trail does lead to iran. iran does not provide technical assistance to the north koreans as many people say. iran provides the cash. this is something we can use to squeeze the north koreans because the north koreans test because they think there are no consequences to it. we have to remember in 2005 the bush administration imposed financial sanctions on north korea. we cut them off from the global financial system. the only way north korea would transfer money around the world to put cash in suitcases to give it to diplomats. we unfortunately lifted those sanctions too early as beijing's behest. we shouldn't listen to china when it comes to north korea. jenna: interesting you say that. we have a expert from nuclear technology and sanctions and all the details that surround this sort of story he. he said there is actually more to be done when it comes to sanctions under north korea. he believes that is a the way to solve this. what do you think?. >> absolutely. a lot of people say we're

sanctioned out and there is nothing more we can do but that is not true. we saw it with financial sanctions. also we could stop north korea's proliferation of missile parts. for instance this year, the south koreans stop ad chinese vessel which had graphite cylinders came from north korea and probably going to syria for syria's missile program. jenna: china has a role in all of this as well? >> china has been backing both iran and north korea with regard to missiles and nukes. >> where can you point to as an example where sanctions have actually worked, when it comes to north korea or iran or anywhere? north korea is obviously still pursuing a very high-tech weapon. >> right. >> according to these reports they deny it. >> sure. >> to be fair when have sanctions really worked? worked5 and 2007 with regard to those financial sanctions i talked about. of course they also worked with south africa which is the prime example. they probably also worked with regard to yugoslavia when the country was going through some problems. sanctions can have an

effect. not enough on their own but when you do that with other diplomacy, yeah, they can have a lot of effect on these regimes. iran right now is reeling because of the financial sanctions that the u.s. imposed on the central bank of iran. jenna: that is what many say. the big question do we see them test a nuclear weapon in the next, 6, 12, 18 months? we'll have to reassess whether or not the sanctions work. >> sure. jenna: we'll have to see about that. gordon, thanks for being on set. appreciate it as always. rick? rick: thank you very much. when we come back we're keeping our eye on the situation on the ground in michigan where pro-union activists and protesters are there upset with a law governor rick snyder is about to sign. that is the freedom to work law. we'll con continue to follow that story for you. does it seem like everything is going to doings these days? might be proof it is. more amazing driving dogs just for you straight ahead.

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country. herbert clutter and his wife and two teenage children were killed in their home in kansas. police arrested two ex-convicts on parole and charged them with the brutal crime months after it happened. richard hickock and perry smith who you see on the screen were convicted and executed. the notorious killers were made famous in truman capote's novel, "in cold blood". the novel comes to play. just a month after the clutter killings, the walker family were murdered also inside their home. this time near sarasota, florida. investigators say the walker murders share striking similarities to the clutter case. the two men convicted and executed were on the run there in sarasota at the time the walker family was killed. so now investigators say this. in florida they want a kansas judge to give the okay to exhume the bodies of the killers to see if their dna ties them to the dna found at the walkers murders

that are yet unsolved. dr. michael baden, forensic pathologist, fox news contributor. perfect person to talk to this. what do you think about the trail we laid out? >> i think it is very interesting because in 1959 when the clutter case came and in 1960 where the current case they're interested in, there was semen on the panties of the murdered wife in sarasota. jenna: that is the walker family. no one knows what happened to them and who killed them. >> still unsolved murder but in 1960 dna didn't exist for examination. that only came into being about 1989. so they have held onto this evidence for the unsolved crime for 53 years. jenna: and doc, isn't it in a box somewhere in the back like we see in the movies and in some police department? >> it is in some police department where it has been saved as evidence because it is an unsolved case. usually that's enough dna, is very hardy, semen is very

hardy. even kept at room temperature it should be all right. jenna: it doesn't have a shelf life? >> it doesn't. right. it will outlive us. in fact when they exhumed, if they're going to ex-assume the bodies of smith and hickock, there is a concern there will be skeletonized and concern for 53 years. our bones and teeth hold onto the dna for hundreds maybe thousands of years. they have been able to get dna from prehistoric animals. jenna: sure. >> so that as long as there are bones and teeth around they will be able to get dna from those two. jenna: they can turn to family members. they don't have to exhume the bodies. >> if there are family members of hickock and smith around, siblings, maybe in their 70s or grandchildren, or nephews, they may still be able to get dna from those without doing exhumation. jenna: the families decided not to claim the two bodies

after they were executed. >> they didn't want to get involved. jenna: you see these two cold cases, convicted murderers have been executed you understand there are many people falsely accused? >> right. jenna: there is a family still doesn't know what happened to some of their relatives but in your professional opinion why reopen this case? why go back and try to figure this out now? >> well, if they can resolve the case and solve the case now the decedents, the walker family, they have relatives and family and friends who want this resolved. it doesn't bring them back but catching the people or identifying who done it does bring a lot of relief to families. jenna: want to get your opinion on something else. we mentioned the truman capote novel. >> right. jenna: graves of two convicted murderers are often visited by fans of this novel. i shouldn't say fans. people of people that are fascinated with the celebrity status of these criminals. as we go back to this case how concerned are you about

copycats or just, well that part of bringing up this crime again? >> that's a problem because some people kill because they want to be famous. they want to get the publicity that other notorious people have. so we do have some fringe people in society who could be influenced by the fact that other people who killed get famous even though they just stay in jail. so that is always a risk and always a problem by popularizing these murders. jenna: you feel the search for answers is more important to the family? >> the search for answers is more important. i think the concept that police departments have and i brought up that old cases can still be solved with evidence from 50 years ago if they have saved the evidence and if they bring it forth. jenna: reassuring to the

public too. if you're a bad guy, just because you're executed doesn't mean you won't be caught some day. that is good message for all of us. dr. baden, nice to have you on set as always a pleasure. rick? rick: jenna, the white house is stepping up pressure on states around the country refusing to comply with a certain key provision of obamacare. we'll tell you what the administration is now doing. plus new fallout over new taxes an fees associated with the health care law. a fair and balanced discussion is straight ahead. plus a man gunned down in midtown manhattan in broad daylight as crowds of shocked tourists look on. the latest in the manhunt for a killer coming up.

jenna: want to take you back out to lansing, michigan, where we're watching this these live pictures come in as we await for what is believed to be the evental signing of the right to work bill by the governor. we mentioned police presence

at the capitol. not necessarily to handle protesters on the screen. some protesters tried to get into the senate chamber as the state senate was trying to approve the right-to-work bill. a lot of attention and emotion in michigan. we'll continue to watch it. as we know the governor can sign this bill making michigan the 24th right-to-work state in the country any moment. we'll keep you posted. rick: the obama administration is now cracking down on states refusing to comply with health care reform. the white house announcing any state that refuses to fully expand medicaid to required levels will not receive full funding under obamacare. this as we learn another state, tennessee, has joined more than a dozen others in opting not to create a state-backed insurance exchange. brad blakeman, former deputy assistant to president george w. bush. brad, is this because the rollout with obamacare is not exactly going as planned? >> you bet. when only 13 states opt in

to medicaid expansion. nine states say they won't. there are a bunch of states sitting on the sidelines freting how they will be able to absorb this kind of cost. it is economic duress on part of the administration. they feel only way they can expand their coverage is threatening the states with funds. fact the matter, rick, 70 million people on medicaid. largest expansion of additional 17 million under obamacare. the states can't afford it. 25% of their current budgets are going out to medicaid. and that is going to blow their budgets up. the federal government says but we'll cover 100% of the costs but only for a few years. then in 2020, their share goes down of the federal government's responsibility. but guess what? the costs go up, almost 100%. rick: i'm sorry to interrupt you, brad, how will these tactics go over now? we'll talk about medicaid funding piece of it. all of sudden we'll see states say, oh, all right, i

will comply? >> well, i don't think it is sustainable at the current rate of states that have opted in as opted out. i think, greg, what it brought is another rack of lawsuits. i think states will be lining up to again fight for their right of sovereignty. also sovereignty issue. if the federal government is paying 100% of the bill they can make 100% of the rules. not only do we have a sovereignty problem but budgeting problem within the states. they just can't afford it. i believe the courts will step in and they will have to either issue stays or injunctions to prevent the federal government from this heavy-handed approach. rick: what about the idea of the states opting out of the exchanges and instead putting that responsibility on the backs of the federal government? they have the right to do that. each state can decide. i understand republican governors not liking obamacare but at the end of the day wouldn't these governors want some control over health care exchanges run in their own state? >> well, look the benefit of

having control is outweighed by the loss of, of the ability to pay for these exchanges. so the states are looking at it, they're doing the math and they're saying if the federal government wants to run a program, you go ahead and you run it but we'll not be burden of the cost of running a program where we don't know what the bottom line cost will be. the federal government doesn't care because they will ask taxpayers to pay more money. but the states have the requirement, many constitutionally, they must have balanced budgets unlike the federal government. rick: brad blakeman, thanks so much. joining us with democratic take, simon rosenberg, president and founder of ndn and former advisor to president clinton's campaign. good to see you. brad says this is heavy-handed on the part of the administration. what do you think? >> i think what hhs secretary sebelius said yesterday in the letter and they wanted to clarify. and what the law said you matching funds if you go up to a certain

level of coverage. some states are asking to get same funds for doing less. they said no. that will not work that way. we've got to stick to the law. what is also clear in the material that hhs put out yesterday, they said look, if you want to cover less people and do some experiments where we match a little bit, we give you full matching for certain targeted groups, we're open to that. they're open to experimentation. one thing that is critical i think throughout this whole discussion that states have choices, right? this is not, they can opt out. they can opt in. the hhs said look, if you guys want to do demonstration projects to figure out how to do it better but we're open for that but basic guidelines will have to be met if they want matching funds for medicaid. rick: simon, we know how long and confusing this bill was when it was going through congress. a lot of people were upset about that. but seems like the administration is still tacking things on to it. we just learned in last several days about new fees that will be levied against employers to cover the whole preexisting coverage mandate.

that's what will pay for it now. we know about fines, depending on size of the company could be tens of millions of dollars. what is going on with this? >> well, i think the reality is that this is the beginning of a significant change in our health care system. i mean when the president moved to reform health care, it is because too few people were covered, costs were going up too rapidly. there was threats to innovation in the system. and i think what we're trying to do now with this new law, and it is a big experiment, there is no doubt about it. we'll learn as we go through it what is working and what isn't. hopefully congress will have the wherewithal to make changes as we learn through pieces aren't working well. rick: a big experiment that take as large portion of our overall economy. that affects everybody in this country. ask you real quickly. only -- >> old system wasn't working either. rick: one more question for you as we watch what is going on with the fiscal cliff negotiations and we heard from john boehner that he wants obamacare on the table. is this an opportunity for

the president to acknowledge the fact that this bill is so unpopular, continues to be so unpopular and perhaps sit down and negotiate some positive changes to the health care law that everybody could be on board with? should this president take that opportunity right now? >> right now, no because it is adding too much complexity to a negotiation that is trying to get done between now and christmas. next year i think everything should be on the table, right? i think as we look to fashion the budget. rick: including obamacare? >> i think that if the republicans and president has said this repeatedly, if they can bring ideas to the table that will improve obamacare he will be open to it. so i think you will see everything on the table next year. but i think i want to be clear he is not backing away from the health care reform that he pushed so hard for because the old system wasn't working. we need a better health care system. remember, this year the past year, we've seen a decline in premiums, in health chaos

cost we have not seen for a long time. there is some evidence this is working but certainly congress will be coming back every year making tweaks and making it better as we go along. rick: simon rosenberg, brad blakeman. thank you both. we'll speak with republican tennessee governor bill has lam. he is one of the 21 governors backing out of the health care exchanges. he says his decision is not motivated by politics. he will tell us why he made the call when he joins us live at 12:45 eastern. jenna: simon said in his research he believes premiums have gone down. we wanted to bring that to you. go online to foxnews.com. find out is the new health care law helping you? will it cost more? plug in the information at foxnews.com/politics where we break down the dollars and cents. you heard both. premiums have gone up, premiums have gone down. we'll work through some of that with you. we heard more about the

navy seal killed in action in the daring rescue of an american in afghanistan. we'll hear from those in this hero's hometown coming up in just a moment. we will continue to watch the scene at michigan's statehouse and pro-union protesters and protests are underway. the governor is ready to sign a right to work bill. we'll keep you updated out of any developments in michigan in just a moment. we'll be right back. wanna see me get some great deals?

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jenna: president obama's second term doesn't begin for another month but some political wonks are looking ahead to 2016. right now the runaway favorite for the dems according to many pundits is secretary of state hillary clinton. i would never call our next guest a wonk but knows this stuff, that's for sure.

campaign carl cameron live for us in washington. carl, why is this coming up and what is secretary clinton saying about it? >> reporter: a, there is nothing wrong with being a wonk. jenna: true, true. >> reporter: two, there is all kinds of speculation and it is rampant. closer we get to the end of the president's first term knowing hillary clinton will give up her role in the state department in the second term has lots of tails wagging insiders are not saying anything. those who know stuff are mum and those who don't have nothing to say that she is pull mulling it. the secretary is fighting stomach flu and had to cancel trips to morocco and united arab emirates. she would be exactly the same age ronald reagan was when he got elected president first time. check out video by a democratic megadonor with farewells and kudos as she ends her career in the state department in the next few months and closing remarks by two key world leaders speak volumes about her plans.

>> someone knows a thing or two about political comebacks i don't think we've heard the last of hillary clinton. ♪ . >> i just have an instinct the best is yet to come. >> reporter: the best is yet to come. latest george washington university battleground poll show 60% view clinton favorably and vice president biden by double digits. among republicans former romney running mate paul ryan has highest favorable number at 47% and jeb bush at 39 and marco rubio at 33. clinton would start as frontrunner as she did four years ago and lost to senator obama. all this attention isn't necessarily a great positive, jenna. jenna: that's a great point. serves you right in the center spotlight right away. do you think any editors here would make any one of as you video in their spare time with a little musical act comepiment?

>> good luck. did four years as secretary of state to get that done. after eight years in the obama administration democrats could be ready for a change the country could be. there are 16 republicans looking at it. give you idea how formidable miss clinton could be, the idea of bill clinton or bush-clinton ticket, bush versus clinton running against one another. no less than newt gingrich said that looks so difficult right now that were she to be the nominee, the republican party right now would be in a very, very difficult position to compete against her. technically, technologywise, in terms of organization, in terms of mechanics of the race. they have a lot of building to do. right now hillary looms as the 800-pound gorilla before 2 gets aggressively started. jenna: i prefer to be called a wonk than a gorilla as we wind up this segment. carl, thank you. rick: update to story we brought you last week. we told you about an animal shelter in new zealand.

folks highlighting the intelligence of dogs having professional trainers teaching them to drive. they're driving on their even, the dogs that is. jenna: are they driving well? rick: driving well enough. trainers say the first time a dog has ever driven a car solo. this is monty motoring around a track in specially modified car. looks very comfortable. just put a cd into the cd player. the trainer says he can put the garr into gear all by himself and even accelerate. a ha. jenna: better than drives we've been in on the road. we'll be [ man ] ring ring... progresso

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rick: on the front lines of a battle, big labor says threatens its future, thousands of union members descending on michigan's statehouse to make their voices heard. lawmakers not backing down in the face of some tough talk. also, a shocking murder in the middle of america's biggest city. ca gunman -- a gunman shoots a man dead before jumping into a getaway car and vanishing.

what we're learning about the victim and the crime. and disturbing new information, how apps meant for kids can pose a threat to their privacy and burden them for years to come. ♪ rick: laundering cash for drug cartels, terrorists and iran, all in a day's work. a brand new hour, and it's all "happening now" i'm rick folbaum. jenna: and theback we're talking about is hsbc, apparently avoiding a criminal indictment but only because filing criminal charges could have destabilized the world's financial system. instead, the bank pay a record penalty. nearly $2 billion this that settlement, and as rick was just mentioning, the bank is facing a slew of accusations including that it transferred funds to mexican drug cartels and also transferred funds to nations like iran, evading international sanctions. charlie gasparino has more from

the fox business network. charlie, is this unique only to hsbc, or is in the first domino to fall here? >> well, i mean, there may be other banks, but it follows a pattern that the justice department has used since arthur anderson following the enron scandal. they didn't want to put any more big companies out of business, so they go into these deferred prosecution agreements, today hit the bank with a big fine and then today kind of move on. what's kind of like -- what's not good about this is that if you think about it, shareholders are suffering when you had probably individual employees who committed possible crimes here. jenna: so you don't think this was a policy necessarily of the entire bank, more department-specific? >> well, there are people involved, right? i mean, i'm not saying the bank shouldn't have been dinged here, but if you think about it, the deferred prosecution agreement extends to the bank. we don't know who's involved in

this. and i, as a business reporter who writes for shareholders, say i think this is kind of a bad thing. to defer the blame to all the shareholders when you had individual people involved, and, you know, it looks like they're making up for not indicting individual people, not charging them because they for whatever reason, probably manpower reasons -- jenna: you have to wonder the repurr connections of that, the -- repercussionses of the two, saying we're going to penalize you. for a bank like this, charlie, the $2 billion penalty, what does that mean for hsbc? >> well, if you notice, the stock went up today. jenna: so it's a good thing? [laughter] >> i mean, they don't get -- by the way, any financial firm that's indicted will go out of business, counterparties won't lend you any money. but still, this is problematic in this sense: individuals were at fault here. where are the charges against the individuals? you are sort of transferring

blame from individuals who do commit, obviously, did something wrong. who knows if it's a crime, maybe it's a civil penalty, but they did something wrong bad enough to ding a bank $2 billion pranse shareholders, and i think that's problematic. jenna: and doing business with drug cartels and iran -- >> right. jenna: -- illegal for a bank to do manager like that. what do you think about that, and i'm calling it an excuse, but it's an explanation for not criminally indicting the bank, would that, indeed, destabilize the world financial system? >> i don't think so. i mean, it would put a big bank out of business. we did, you know, let's look back the last time the world financial system was destabilized. bear stearns went out of business, jpmorgan took them over, essentially, during the early stages of the financial crisis. lehman brothers went out of business, and some people say that was the spark that led to the greater financial crisis -- jenna: charlie, i need to interrupt you, because we've got to run to another big econ

story, house speaker john boehner just took the floor in talking about the fiscal cliff. let's listen in. >> mr. speaker, i rise today to recognize victor dhi dhi qar lor receiving -- jenna: well, maybe i jinxed things. [laughter] i was told that he was speaking on the floor. we saw him come up, but sometimes they need to do a few different orders of business before they actually get to the topic, so i apologize for charlie gasparino who was giving us an overview of where we really stand here in the financial system, and that does play into this fiscal crisis, because one of the big questions with the fiscal cliff crisis or negotiations is how big of an impact will it really be to this economy overall, ours and the global economy? so as we continue to watch the business on the floor of the house, we'll bring you back there when speaker boehner does, indeed, address the fiscal cliff. rick: overseas now, and we're going to move to cairo, egypt, where egypt's army is begin bracing for -- again bracing for

more protests after the showdown intensifies. many egyptians are afraid the proposed changes rammed through by the president, morsi, and his muslim brotherhood allies will pave the way for the country to become an islamic state. greg talcott is streaming live from cairo with the latest. greg? >> reporter: hey, rick. another tense night here in cairo, my first for a while. behind me, tahrir square is filled with challengers of egyptian president mohamed morsi, a scene of shooting earlier today. but the focus tonight, rick, is a few miles away from where we are right now, the presidential palace. anti--morsi protesters out there in big time. they've been trying to knock down a barrier made of rock and steel separating them and the palace, all the while supporters of morsi are gathering not too far away also in big numbers. there was a deadly clash between those two sides just one week ago. the fear is this could happen again.

the difference, however, between now and then is that morsi in the interim has endowed the military here with stronger powers. they can intervene, maybe break up some violence. now, all the while this is all focused on that draft constitution which is planned for a vote, a referendum on saturday. the critics of morsi say that he's trying to rush it through. they say it's discriminatory towards segments of the population here, and they also say that his own style over the last couple weeks reminiscent of one other strong man we've seen here in egypt, mubarak. for his part morsi and his supporters say they were elected democratically and are trying to protect the gains that have been made in the revolution here. the thinking now, rick, is that the referendum will go forward on saturday, that it could, indeed, be passed, but might not go down without a fight, and we're watching for a possible fight tonight. back to you.

rick: greg talcott streaming live from cairo, thanks so much. jenna: well, the remains of a navy seal killed in afghanistan have been returned to his family right here in the united states. his name, nicholas checque. he was just 28 years old, and he died -- he was killed in action during a daring mission that freed an american doctor who was kidnapped by the taliban. kelly wright is live in washington with more on the story of this hero. tell us a little bit more about what we're learning. >> well, we're learning that this was a very value i can't young man. the body of petty officer first class nicholas checque returned to the united states late last night. a navy official says his family is currently making arrangements for private funeral services. he grew up in monroeville, pennsylvania, that's a suburb of pittsburgh. he joined the navy in 2002 and became a member of the naval special warfare unit, better known as seal team six. that was the team that killed usama bin laden, although he

was not a part of that particular mission. the operation that he was involved in was the daring rescue of dr. dilip joseph, an american killed by the taliban, and during the combat mission nicholas checque was killed. the family of dr. joseph issued a statement about his death. they sate: we want to extend our deepest condolences to the family of the american sailor. we could not be more grateful for that soldier's heroism and for the bravery of all to bring dilip home. defense secretary panetta also weighing in saying he was deeply saddened to learn a u.s. service member was killed during the operation. jenna: taking the look of many names of some of our brave men and women who have died just recently in afghanistan, and you really have to think of their families at this time of year especially, kelly, going into the holidays. thank you very much. >> reporter: you're welcome.

rick: we're just getting word that the michigan house has approved, given final approval, that is, to the right-to-work bill that has made its way through that state's republican-controlled legislature. all that's left now is for republican governor rick snyder to sign it. it will curb the power of unions, it gives workers the chance to decide for themselves whether or not to pay union dues. they decide that as opposed to mandatory dues which is the way that the state has been run and so many other states have been run up to now. this is a story that has been playing out, it has seen some very plowed -- loud and violent protests, but peaceful demonstrations going on right now around the statehouse. again, final approval given by the republican-controlled house in the state government there in michigan. all that's left is the governor's signature, it could come later today or tomorrow. of we will certainly keep you posted. americans facing great danger in hot spots all around the world. it's now three months since the

murderous attack at our consulate in libya. is the u.s. any closer now to bringing the killers to justice and making sure that nothing like that ever happens again? also, you may not be familiar with this country, but terrorists linked to al-qaeda are starting to call it home. what just happened there making it a prime spot for terrorists to establish a brand new foothold. we'll tell you about it. anncr: some politicians seem to think medicare and...

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[ female announcer ] ensure clear. nine grams protein. zero fat. in blueberry/pomegranate and peach. rick: want to tell you about a disturbing new development in west africa. the military forcing the prime minister of mali to resign after he tried to leave the country. a former scientist for nasa, he was forced to read a brief statement announcing his resignation on state television. this complicates international efforts to help remove islamist rebels linked to al-qaeda from

the northern part of that country. jenna: today marks exactly three months since the deadly terrorist attack on our consulate in benghazi. several suspects in libya linked to the attack have been identified, but none have been arrested because of, apparently, their ties to powerful militias there. we also hear that egypt's made an arrest, but we have yet to talk to that person in custody. the killers murdered u.s. ambassador chris stevens and three other americans. here's president obama promising action the next day. >> make no mistake, we will work with the libyan government to bring to justice the killers who attacked our people. jenna: rick has served as spokesman, peter weeks is a form -- brooks is a senior fellow for national security affairs at the heritage foundation. great to have you both today, and can let's try and put politics ea side because there's bigger questions than just the politics here. and they are are we safe, and

what's at stake with this terrorist attack in benghazi. peter, what's at stake now today in the fact that we don't have anyone in custody, and we don't really know who did it? >> it's like we don't care. it's horrible. i mean, you know, i know that there are crack counterintelligence officers out there trying to crack this case, but what i'm worried about is that it sends a signal to the terrorist world that they can attack us and that we aren't going to do anything about it, that they can act with impunity against us. i think i shows a signal of weaknesses. i'm very, very concerned. it's like as if we sent investigators out to investigate what happened after the attacks of 9/11 in 2001 to afghanistan to try to find out who did this, where's the military action? when are these people going to pay for killing four brave americans? jenna: rick, on that, we've heard a little bit of an explanation about the fact there is no military action, and that is the sovereignty of libya. there are some officials that are concerned about us going into the country and operating with impunity, if you will.

you have so much experience on the diplomatic side. how do you prioritize that, the sovereignty of a country but also finding answers here in. >> well, first of all, i think, you know, the right thing to do, the president needs to say that we're going to respect the sovereignty of any country, and that's exactly what we have to do. but i do think that there are ways to push through and make them realize that there is a larger issue going on here. it's not an investigation for a robbery. this is a terrorist attack, we've labeled it a terrorist attack, and we need to be very clear with these countries to say either you are with us, or you're not. either you're going to find the killers and arrest them, or we are. and i think that you can respect the sovereignty, but you can push these countries to say you have to act. you're a member of the united nations, there's a lot at stake, there's a lot of foreign aid here. the u.s. and western governments are expecting you to produce, and if you can't do it, then we're going to come in, and you'll work side by side with

us, but we are going to come in and take hold of this investigation. i don't think that's happened. it's been three months. jenna: peter, pick up off what rick just said, saying, listen, there's consequences to not working with us. how would you approach, drawing upon your experience in the cia, how would you approach even solving this mystery in front of us right now? >> i mean, it has to come from intelligence. i doubt that the fbi, as good of work as they really do, are going to get the answers they need talking to libyan witnesses. this has to come through clandestine sources, technical means that'll allow us to pinpoint who did this. you're going to be listening to intercepts and things along this line which will allow you to act. i don't want to act against people who are not responsible for this, but i think after three months considering we have the world's best intelligence agencies and investigators, it's troubling to me, i'm disappointed that we haven't been able to bring these people to justice. and like i said, this is sending a terrible signal to folks around the world. and, you know, rick just

mentioned mali. that's a place that's becoming an al-qaeda state. jenna: and youty they're -- do you think there's a connection there? why? >> it's a result of what happened in libya, because after the revolution was over in the libya, the arab spring uprising in libya, all of these arms that were loosed by that war fell into the hands of islamist extremists, radicals, al-qaeda operatives and other rebels, and today went to mali. and right now you have an al-qaeda state being developed the size of texas. and some of these may have been in on what happened in benghazi. and tear not only targeting africa, they're targeting the united states and americans as well. jenna: that brings us, again, to the central question, rick. how does this affect national security, how safe are we really in the wake of this terrorist attack? >> well, i think, i think we've got to look at the larger issue, and the simple fact is that on monday is the two-year anniversary of the arab spring. and let's remember that this all

started from a fruit vendor in tunisia who was really upset about the economic conditions of his country and the overregulation. and so i'm hoping that the young people, including what's going on in egypt, they are not satisfied with the lack of economic progress. this is not just a political issue, it's also an economic issue. and they are holding president morsi accountable. i think that's a good thing, and i think we'll see uprisings continue until these leaders begin to give their people jobs and economic freedom -- jenna: but until then, are we safe? >> well, i think it's a mixed bag. we have got to be working very diligently to make sure that our national security is protected and these political questions as it unravels, you know, the muslim brotherhood needs to be held accountable. we need to be working very hard across the region so that islamists don't just grab power, but they actually produce, and they bring about reform not just grab power. jenna: a lot of questions about this region that's in transition right now, and certainly more

discussions ahead. thank you both or for your expertise. we appreciate it very much. >> thank you for having me. rick: coming up, new developments in the trayvon martin shooting case in florida. the possible setback for accused murderer george zimmerman, we'll tell you about that. also, a brazen killer guns down a man on a busy street in midtown manhattan. why police think this was no random crime. the very latest. >> he was gone, whoever did it was gone. nobody seen him. and there was a bunch of people around. [ male announcer ] when was the last time something made your jaw drop?

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speaker. rick: speaker of the house john boehner and president obama meeting over the weekend, speaker boehner taking to the floor of the house just moments ago. take a listen. >> mr. speaker, last week republicans made a serious offer

or to avert the fiscal cliff x most of it was based on testimony given last year by president clinton's former chief of staff, erskine bowles. and as mr. bowles himself said on sunday, we have to cut spending. well, he's right. washington has a spending problem. let's be honest, we're broke. call for a balanced approach. a lot of people know that the president and i met on sunday. it was a nice meeting, it was cordial, but we're still waiting for the white house to identify what spending cuts the president is willing to make as part of the balanced approach that he promised the american people. you know, where are the president's spending cuts? the longer the white house slow walks this process, the closer our economy gets to the fiscal cliff. here's what we do know.

we know that the president wants more stimulus spending and an increase in the debt limit without any cuts or reforms. that's not fixing our problem, frankly, it's making it worse. and on top of that, the president wants to raise tax rates on many small business owners. now, even if we did exactly what the president wants, we would see red ink for as far as the eye can see. that's not fixing our problem either, it's making it worse, and it's hurting our economy. i think the members know i'm an optimist. i'm hopeful that we can reach an agreement. this is a serious issue, and and there's a lot at stake. the american people sent us here to work together towards the best possible solution, and that means cutting spending. now, if the president doesn't agree with our approach, he's got an obligation to put forward a plan that can pass both chambers of the congress. was right now -- because right

now the american people have to be scratching their heads and wondering when is the president going to get serious. rick: so that, of course, the speaker. now, the house minority leader, steny hoyer, took to the floor just after the speaker did, and he called speaker boehner's remarks that we just listened to, quote: disappointing. he says republicans are not explaining to the american people how they want to pay for the spending cuts that they are insisting on and that speaker boehner has given the american people no confidence that their taxes will not go up on january 1st. as we all know, as we go over the cliff, all of the bush era tax cuts will expire at midnight on december 31st. so the negotiations continue, we'll keep you posted. jenna: well, right now the latest on the manhunt for suspects in a brazen murder on the streets of midtown manhattan at a time when new york is full of holiday tourists. police just releasing a mug shot of the victim who they identify as 31-year-old brandon woodard. but investigators are saying very little else about the case.

wnyw's robert moses has the latest from from the scene. >> reporter: the shooting happened outside the st. thomas choir school. police continue to review surveillance video from this area. you can see one of the cameras that may have captured this shooting. while we don't know the shooter's exact motive, we do know that this shooting was not random. >> when i heard the shot and i turned around, i see him drop on the floor. >> reporter: police say a man dressed in a dark coat with a hood and khaki pants approached 31-year-old brandon lincoln woodard whose identification shows he's from los angeles as he walked west on 58th street between 7th avenue and broadway. it was around 2 p.m. in an area bustling with people, but all those potential witnesses did not deter the shooter. he shot woodard once in the back of the head outside the st. thomas choir school. >> there was just so much blood, and it was just coming out like, almost like a geyser coming out of his head. it was just -- i had to turn

away. >> you -- he couldn't say a word because he got shot in the head. >> reporter: witnesses say the shooter seemed to disappear into thin air. >> he was gone, whoever did it was gone. nobody seen him, and there was a bunch of people around. >> reporter: police say after the shooting the gunman got into the front passenger seat of gray or silver lincoln waiting near the scene. the person in the driver's scene drove east on 58th street, turned right on 7th avenue and disappeared. i've been speaking with police here new york city, they tell me they are still looking for both the shooter and the driver of that getaway car. in midtown manhattan, robert moses, fox news. rick: when we come back, an alarming invasion of privacy threatening children 40 use mobile apps. what you need to know about hundreds of companies who may be snooping on your children. plus, massive lawsuits, big insurance claims, dangerous concussions, how it could all have a big impact on all kinds of sports and all kinds of

athletes, straight ahead.

jenna: right now in the trayvon martin shooting case accused murderer george zimmerman is back in court today ahead of his trial set for next summer. phil keating is live with more. >> reporter: george zimmerman remains stuck here in seminole county, florida and continues to wear his gps ankle bracelet. he has worn that tracking device

for the past seven months just as he did this morning as he walked into court with that blue suit on. the judge denied his request, though, for more freedom, which the defense claims it needs due to continued threats to zimmerman's safety and trial preparation. the attorneys explosively contentious in the courtroom giving all of us a little taste of the coming second-degree murder trial, expect a battle. >> who is generating all this publicity? why are we here for this motion? is it more for publicity? maybe it's for autographs. maybe now the defendant wants to get more autographs. >> reporter: the defense attorney's eight motions also referencing this color photo of a bloody george zimmerman the night of the deadly shooting, declaring he is the victim here and killing 17-year-old trayvon martin was justifiable self-defense. the attorney wants every document and communication from the sanford detectives, f.b.i., prosecutors, arguing that the

only reason zimmerman was charged was social and political pressure. >> wow, there is a lot of information out here that seems to suggest that george acted appropriately that night and there seems to be not very much to suggest that he threatened, ran off, corner erred, profiled racially, anything like that. >> reporter: ruling for the defense the judge is allowing zimmerman's team to get the additional files. the state prosecutors are handing over the original recording of a woman known as witness 8. she is the teen aged girlfriend of trayvon martin who claims she was talking with him on a cellphone the night of the shooting in february when awful this went down and claims trayvon was telling her that some guy is following her and she may have actually heard the first words spoken between the two of them. she is considered a star witness for the state. jenna: jenna: more on this story as we get it, phil, thank you very much. bill: right now to the growing concern over sports concussions and head injuries.

the nfl could see its liability costs, its insurance premiums rise as it faces lawsuits brought by thousands of former players, but the financial impact may not be limited to just the pros, higher insurance costs could spill over and have an impact on several youth sports programs as well. we wilwe liz weel is a fox news legal analyst. this is a suit brought by thousands of players who didn't tell them about con cushion -gs. >> reporter: as you know concussions could be one thing, maybe you see it at that first moment or maybe it takes months or years to diagnose that there was a real i shall eye and the nfl didn't warn them about that. they are banding together, they are saying nfl you didn't warn us, therefore you are liable. if the nfl is held liable for all the lawsuits it could be hundreds, thousands, millions and millions of dollars, what is going to happen with the insurance if you'll either cut out the complete insurance for

concussion protection or up the rates for the nfl. bill: why then would a case involving the nfl, which is still being litigated, still in the courts nationally, a federal case, why would that have an impact on high school football, for example or lacrosse or field hockey. >> reporter: rick, you and i know that if we sign off for any sport, i have two teenage kids you sign off on a waiver saying you bear mow liability, immunity completely for the school. if this goes through and this it's told that the kids were not informed about what could happen, not a broken leg or ankle, but a concussion that will be a big issue for parents in middle school and high school kids. rick: what about for school district? they have to takeout insurance policies to protect the kids to take part in extracurricular activity, will a local school district see insurance premiums

come up. >> reporter: here is what could happen, if it's so dangerous and dangerously expensive is that the schools would say, lacrosse team, basketball, soccer, we can't afford it this year. that could happen. i mean, if the rates are raised to that level, and the parents cannot sign off on indemnity any more the school system may very well say, it's over, we can't afford the program or the system any more. rick: we here a lot about tort reform, a lot of conservatives talk about that and it was part of the debate when we talked about the obamacare law, it never ended up getting into the law but the idea of those lawsuits that get into the system and that drive up the costs, is this a prime example of that. >> reporter: prime example and here is who really benefits from it, the lawyers. the lawyers love these cases, they can bring these lawsuits even years after the actual injure has happened. they can bring a lawsuit for a bunch of children, they can make

30 to 40% on that lawsuit and that will drive up the expenses even more to where the school systems cannot afford to have the programs. that's what i worry about, not just as a lawyer but as a mom. rick: of course as a mom who wants to see her kids, you know,. >> reporter: get out and do sports, do it, exactly. rick: and do things kids are supposed to do. good to see you. jenna. jenna: a new warning about mobile apps that apparently spy on your kids. the federal trade commission is finding hundreds of popular games and ed indication tphal' that collect all kinds of information about your kids, including emails, phone numbers, even their exact location all without permission granted by the parents. the ftc says despite an earlier warning the industry is not doing enough to protect childrens' privacy. joe mason is an identity theft expert, he's author of "bankrupt at birth" and lance ulanoff ised

ka torisis editor and chief of all things related. we saw this pass through from the ftc, one of our teammates say you know what i noticed something on my ten-year-old's e-mail the other day. she has an ipad, she has apps for games, lance and all of a sudden there was ads for sex, she is ten years old. he was wondering how did she get this when i monitor her email? could it be the apps? lance, just explain to us how that could be months. we don't know if it happened in this case but how does it happen? >> well, so many of these', there are 700,000 apps in the app store and an equal number in the google app store, and a good number of them collect date a. this is how they work. and when you hand your child a mobile device, a phone or ipad or something like that and they open and app the majority of them are collecting data and serving ads without your

permission. and when they collect data they are looking at things like location, they could be collecting an email address. it depends on your settings within the phone and your setting for the child. as soon as you hand that device to the kid you kind of walk away, right and they are going wherever they are going. most people i talk tor no to are not setting up the privacy controls on these devices. jenna: let's talk about how to do that. what is the number one thing a parent can do, joe? >> the number one thing a parent can do is pay attention to what is going on with the apps. reading the privacy poll seif the apps, only 20% of them have any sort of privacy policy for parents. they need to review it and ed indicate the children. jenna: if there is nothing something that is really accessible do you just not use the app at all? >> yeah i would discourage parents from using it and teaching good habits in using apps in general is something we recommend that all parents do. not many parents think about

that. >> one thing to keep in mind is children tend to lead in this case. the children will come to the parent and say i want this app, i want this device, this app, parents don't always know as much about these' as their children do and they say, well, they'll say a lot of my friends are using it. they say, all right that is problem below okay, then they let them go. jenna: is there something specifically for people who are not as familiar with settings that they should watch over, turn off to an offsetting so they can have more privacy protection? >> certainly ios, the iphone and ipads have parental controls, they are not really powerful, some of the new tablets that are out there the kindle fire hd and the barnes & noble nook hd both of them actually more powerful profiles and parental controls. there is free time on the amazon side which let's you set which apps and how much time you can spend on it. with the barnes & noble nook you have a profile. you say you're this kid, you hit that and they have this really

closed off world as far as what they can do. you really want to look for that when you're buying your device, don't trust your kids, they'll go wherever you allow them to. jenna: i'll point our viewers to national.com for more information on that especially during the christmas season when they are shopping for some of this. i am curious if you can pick up on what lance said, you can pick your device and taylor it so it is hopefully a little more safe in general. the ftc is saying they want to have more regulations and that is part of the way we can solve this problem. how do you see it? >> i definitely agree. i think it's the role of the companies who make the apps, the role of the developers and app store to create more transparency for parents. it's also important the parents pay attention too what their children are doing and what this can lead to as can other things lead to with children is child identity theft which is becoming a growing problem in this country and this is one avenue that we're talking about today that thieves can exploit and take advantage of children. jenna: jenna: a recent survey said one

out of 40 households their child's identity will be stolen and they may not know for years. joe and lance we hope to have you back. great conversation. >> thank you for having here me on. rick: why this suspected crook's escape path wasn't such a good choice after all. plus, another governor says no thanks to setting up a healthcare exchange in his state under obamacare, he'll tell us why, and what he thinks would be a better solution when we come right back. pwap hi. i'm henry winkler.

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rick: tennessee become being the latest state to say know it is setting up its own healthcare exchange under obama care meaning it will be up to the federal government to set one up. republican governor bill hazlum joins us now. good to see you governor. why did you make this decision. >> we started with the premise, we'll do better than the federal government will. we think we can do it faster, better, cheaper than they can. in the end they couldn't answer

our questions, and to go into something that is this vast of an enterprise and have so many things unanswered. we've actually gotten820 pages of rules, still in draft form for something they've known is in the works for two years. it felt like to us they weren't organized well enough for us to do this with them. rick: you are the chief executive of the state of tennessee. >> right. rick: governors like to have as much control as they can. and here you are basically giving a lot of the control of the healthcare of your people to the federal government. do you have any problems with that. >> i have a lot of problems with that. the decision on the exchange won't make that much a difference one way or the other. our fear was it didn't give us flexibility or latitude than running with them would, or letting them run it would. and in exchange for that we were entering into this like i said

partnership with them that they wouldn't define for us. so i have a lot of issues with how the healthcare plan works out, how much decision-making it takes out of not just state hands but individual's hands. i have a major concern. i don't think the state basic exchange was going to solve that problem. rick: you said in a statement that you released on monday that you've opposed obama care from the very beginning and you hoped your efforts and those who agree with you would have been successful in the courts and at the ballot box, you weren't, you weren't successful in the courts. the supreme court ruling in favor of obama care. you weren't successful at the ballot box, the president has just won a second term. >> that's right. our job now is to implement. i don't like the law, i wish it hadn't been passed, i wish the supreme court had overturned it and i wish we had a different election in november but we didn't. we have to deal with the reality. there will be exchanges set up in every state. the question is are we going to run them or have the federal government run them, as the chief executive of the state i

didn't feel good about going into this relationship when they wouldn't define what it would look like. people kind of entrusted us with making those sort tkaoef situations, an and as ill defined as it was, it was not the right thing for tennessee. rick: is as john boehner has said, is obama care the law of the land or are we going to continue to see these court of challenges and battles that opponents will hope will finally chip away so that it goes away all together? >> like i said i'm not a fan but i think at least for governors we have to go forward on the basis that this is what was passed and we have to implement the pieces that we are responsible for. again, i'd love to see a different direction. i think it's incredibly costly for the federal government, for state governments it will be difficult and for small businesses as well. i'd like to see it go away, in the meantime we are charged with implementing it as it is. rick: bill haslum is the governor of the great state of tennessee. always fun to visit tennessee.

thank you so much, sir. >> come down and spend some money with us. rick: will do. jenna: spoken like the true ceo of the state, right? a new report raising safety concerns for the u.s. coast guard, can its aging fleet of ships keep up with today's mission is the big question. weee take a closer look at that. a massive protest in michigan as the state house of representatives votes to send a controversial right to work measure to the governor's desk for signature, probably today. a live report from the scene next. [ metal rattling ] ♪ boo! i am the ghost of meals past. when you don't use new pam, this is what you get. residue. [ female announcer ] bargain brand cooking spray leaves annoying residue. that's why there's new pam. hi, i'm ensure clear... clear, huh? i'm not juice or fancy water. i've gotine grams of protein. that's three times more than me! [ female announcer ] ensure clear. nine grams protein. zero fat. in blueberry/pomegranate and peach.

jenna: right now a foe tense alley dangerous situation really for the u.s. coast guard. a new report is finding its aging fleet of ships is making it tough to carry out missions, ranging from search and rescue to chasing down drug smugglers. adam housley is live in san

pedro with more. >> reporter: the gao report the government accountability office says the condition of the fleet overall is a poor one. they say that the fleet is generally declining. of course a situation where about every single agency and you and i are dealing with budgetary concerns nationwide the coast guard is no different. this is a cutter that has been decommissioned. it's on its way to the bay area where it will be stipulated down and sold to one of our allies most likely in the pacific region. there was one just like it. this one was commissioned in 1972. this one behind it served in vietnam and it's still serving today. as you might imagine it's a little bit outdated, it's difficult but the coast guard still gets its work done even though they would like some new ships, take a listen. >> these things are getting old and tired hard to find equipment and parts for the main moverrers, the engines and generators. frankly they are just designed in a way that doesn't meet environmental standards and all those things. they are becoming increasingly difficult to maintain and

operate. >> we 4 miss about two-thirds of the opportunities tow interdict drugs because we don't have a ship in the immediate vicinity. it could be because the ship is back in the home mort getting a repair. that is the impact we are seeing right now is the missed opportunities. >> reporter: the coast guard has 11 different mandates everything from dealing with the anti-terror issues overseas to the ice breakers up north in the arctic to along the california coast the panga situation as drug runners move further and further north, in some cases 400 miles north. we saw a tragic incident along the coast last week where one of the coast guard members was killed by a panga boat, basically run over as they tried to stop them. they are trying to replace 12 ships with eight ships the idea is the new ships will be better, faster, bigger and do more, as you might imagine with this budgetary situation it may not be really enough to fully do what the coast guard wants to do even though they won't tell you on camera, off camera they would

like more assets, that is for sure. jenna: an interesting story we haven't hear a lot about until now. thank you, ad adam. we'll be right back. [ mother ] you can't leave the table

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